In addition to being important and a legal requirement, filing tax returns could actually be beneficial and result in good tax refunds. Many businesses are encouraged by the government and there are always ways in which a business can make money and increase its refunds. However, the process could be more challenging than one might think since many of the ways in which one can save money are not very evident. Moreover, business taxes can get complicated and there are many additional documents and details one should keep track of in order to be done correctly. Here are a few tips on how to get a bigger business tax refund.
Claim your home office space
If you work from home, you should be able to write off your business related home space on your tax returns. Many people in the past were hesitant about doing that because it would increase your chances of being audited, which is always difficult even you have evidence for everything you claim. However, now it is a lot more common for people to be working from home and it does not pose as much of a red flag anymore. In any case, you do need to make sure that anything and everything you claim is related to your work and can be proven to be so in the event that you are audited.
In the first year after you buy furniture or electronics to be used in offices and for work related purposes, you can deduct 100% of those expenses when you are filing your taxes. You could also claim deprecation cost after 7 years of using the furniture. Run the numbers and see whichever gives you a better return. You can also deduct the cost of supplies.
Another major expense for business is travel. You may be pleased to know that you could also claim that expense. Airplane and train tickets, along with car mileage, meals, and outings with clients can all be claimed as business related expenses. You should check taxreturn247.com.au for more information on the different percentages you could claim for any of those expenses depending on the type of business you own and the nature of the expenses.
Health insurance and social security
As an employer you are required to pay social security on behalf of your employees and it is usually higher than what companies pay. However you can deduct a portion of this when you are filing your taxes. Moreover, health insurance payments and premiums can also be deducted and will help you to increase your tax refunds.
As a business owner you should strive to maximize your gains and any potential return you may be able to get. It is your right to do so and it is additional money that can be invested back into your business and help you expand. Continue reading this in order to get more information on how to save up money and increase the refund from your taxes.